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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 890 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 890

  To establish the supplemental fraud fighting account, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 5, 2011

Mr. Leahy (for himself and Mr. Grassley) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
  To establish the supplemental fraud fighting account, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fighting Fraud to Protect Taxpayers 
Act of 2011''.

SEC. 2. DEPARTMENT OF JUSTICE WORKING CAPITAL FUND REFORMS.

    Section 11013(a) of the 21st Century Department of Justice 
Appropriations Authorization Act (28 U.S.C. 527 note) is amended--
            (1) by striking ``Notwithstanding'' and inserting the 
        following:
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `covered amounts' means--
                            ``(i) the unobligated balances in the debt 
                        collection management account; and
                            ``(ii) the unobligated balances in the 
                        supplemental fraud fighting account;
                    ``(B) the term `debt collection management account' 
                means the account established in the Department of 
                Justice Working Capital Fund under paragraph (2);
                    ``(C) the term `fraud offense' includes--
                            ``(i) an offense under section 30A of the 
                        Securities Exchange Act of 1934 (15 U.S.C. 
                        78dd-1) and an offense under section 104 or 
                        104A of the Foreign Corrupt Practices Act of 
                        1977 (15 U.S.C. 78dd-2 and 78dd-3);
                            ``(ii) a securities fraud offense, as 
                        defined in section 3301 of title 18, United 
                        States Code;
                            ``(iii) a fraud offense relating to a 
                        financial institution or a federally related 
                        mortgage loan, as defined in section 3 of the 
                        Real Estate Settlement Procedures Act of 1974 
                        (12 U.S.C. 2602), including an offense under 
                        section 152, 157, 1004, 1005, 1006, 1007, 1011, 
                        or 1014 of title 18, United States Code;
                            ``(iv) an offense involving procurement 
                        fraud, including defective pricing, bid 
                        rigging, product substitution, misuse of 
                        classified or procurement sensitive 
                        information, grant fraud, fraud associated with 
                        labor mischarging, and fraud involving foreign 
                        military sales;
                            ``(v) an offense under the Internal Revenue 
                        Code of 1986 involving fraud;
                            ``(vi) an action under subchapter III of 
                        chapter 37 of title 31, United States Code 
                        (commonly known as the `False Claims Act'), and 
                        an offense under chapter 15 of title 18, United 
                        States Code;
                            ``(vii) an offense under section 1029, 
                        1030, or 1031 of title 18, United States Code; 
                        and
                            ``(viii) an offense under chapter 63 of 
                        title 18, United States Code; and
                    ``(D) the term `supplemental fraud fighting 
                account' means the supplemental fraud fighting account 
                established in the Department of Justice Working 
                Capital Fund under paragraph (3)(A).
            ``(2) Debt collection management account.--
        Notwithstanding'';
            (2) by striking ``Such amounts'' and inserting ``Subject to 
        paragraph (4), such amounts''; and
            (3) by adding at the end the following:
            ``(3) Supplemental fraud fighting account.--
                    ``(A) Establishment.--There is established as a 
                separate account in the Department of Justice Working 
                Capital Fund established under section 527 of title 28, 
                United States Code, a supplemental fraud fighting 
                account.
                    ``(B) Crediting of amounts.--Notwithstanding 
                section 3302 of title 31, United States Code, or any 
                other statute affecting the crediting of collections, 
                the Attorney General may credit, as an offsetting 
                collection, to the supplemental fraud fighting account 
                up to 0.5 percent of all amounts collected pursuant to 
                civil debt collection litigation activities of the 
                Department of Justice.
                    ``(C) Use of funds.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Attorney General may use amounts in the 
                        supplemental fraud fighting account for the 
                        cost (including equipment, salaries and 
                        benefits, travel and training, and interagency 
                        task force operations) of the investigation of 
                        and conduct of criminal, civil, or 
                        administrative proceedings relating to fraud 
                        offenses.
                            ``(ii) Limitation.--The Attorney General 
                        may not use amounts in the supplemental fraud 
                        fighting account for the cost of the 
                        investigation of or the conduct of criminal, 
                        civil, or administrative proceedings relating 
                        to--
                                    ``(I) an offense under section 30A 
                                of the Securities Exchange Act of 1934 
                                (15 U.S.C. 78dd-1); or
                                    ``(II) an offense under section 104 
                                or 104A of the Foreign Corrupt 
                                Practices Act of 1977 (15 U.S.C. 78dd-2 
                                and 78dd-3).
                    ``(D) Conditions.--Subject to paragraph (4), 
                amounts in the supplemental fraud fighting account 
                shall remain available until expended and shall be 
                subject to the terms and conditions of the Department 
                of Justice Working Capital Fund.
            ``(4) Maximum amount.--
                    ``(A) In general.--There are rescinded all covered 
                amounts in excess of $175,000,000 at the end of fiscal 
                year 2012 and the end of each fiscal year thereafter.
                    ``(B) Ratio.--For any rescission under subparagraph 
                (A), the Secretary of the Treasury shall rescind 
                amounts from the debt collection management account and 
                the supplemental fraud fighting account in a ratio of 6 
                dollars to 1 dollar, respectively.
            ``(5) Annual report.--Not later than 6 months after the 
        date of enactment of the Taxpayer Protection and Fraud 
        Enforcement Act of 2011, and every year thereafter, the 
        Attorney General shall submit to Congress a report that 
        identifies, for the most recent fiscal year before the date of 
        the report--
                    ``(A) the amount credited to the debt collection 
                management account and the amount credited to the 
                supplemental fraud fighting account from civil debt 
                collection litigation, which shall include, for each 
                account--
                            ``(i) a comprehensive description of the 
                        source of the amount credited; and
                            ``(ii) a list the civil actions and 
                        settlements from which amounts were collected 
                        and credited to the account;
                    ``(B) the amount expended from the debt collection 
                management account for civil debt collection, which 
                shall include a comprehensive description of the use of 
                amounts in the account that identifies the amount 
                expended for--
                            ``(i) paying the costs of processing and 
                        tracking civil and criminal debt-collection 
                        litigation;
                            ``(ii) financial systems;
                            ``(iii) debt-collection-related personnel 
                        expenses;
                            ``(iv) debt-collection-related 
                        administrative expenses; and
                            ``(v) debt-collection-related litigation 
                        expenses;
                    ``(C) the amounts expended from the supplemental 
                fraud fighting account and the justification for the 
                expenditure of such amounts; and
                    ``(D) the unobligated balance in the debt 
                collection management account and the unobligated 
                balance in the supplemental fraud fighting account at 
                the end of the fiscal year.''.

SEC. 3. REIMBURSEMENT OF COSTS AWARDED IN FALSE CLAIMS ACT 
              PROSECUTIONS.

    Section 3729(a)(3) of title 31, United States Code, is amended by 
adding at the end the following: ``Any costs paid under this paragraph 
shall be credited to the appropriations accounts of the executive 
agency from which the funds used for the costs of the civil action were 
paid.''.

SEC. 4. INTERLOCUTORY APPEALS OF SUPPRESSION OR EXCLUSION OF EVIDENCE.

    Section 3731 of title 18, United States Code, is amended in the 
second undesignated paragraph by inserting ``Attorney General, the 
Deputy Attorney General, an Assistant Attorney General, or the'' after 
``an indictment or information, if the''.

SEC. 5. EXTENSION OF INTERNATIONAL MONEY LAUNDERING STATUTE TO TAX 
              EVASION CRIMES.

    Section 1956(a)(2)(A) of title 18, United States Code, is amended--
            (1) by striking ``intent to promote--'' and inserting the 
        following: ``intent to--
                    ``(i) promote''; and
            (2) by adding at the end the following:
                    ``(ii) engage in conduct constituting a violation 
                of section 7201 or 7206 of the Internal Revenue Code of 
                1986; or''.

SEC. 6. STRENGTHENING THE PROHIBITION AGAINST TRAFFICKING IN PASSWORDS.

    Section 1030(a)(6) of title 18, United States Code, is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``protected'' before ``computer''; and
            (2) by striking ``, if--'' and all that follows and 
        inserting ``; or''.

SEC. 7. CLARIFYING VENUE FOR FEDERAL MAIL FRAUD OFFENSES.

    (a) In General.--Section 3237(a) of title 18, United States Code, 
is amended in the second undesignated paragraph by adding before the 
period at the end the following: ``or in any district in which an act 
in furtherance of the offense is committed''.
    (b) Section Heading.--Section 3237 of title 18, United States Code, 
is amended in the section heading by striking ``begun'' and all that 
follows and inserting ``taking place in more than one district''.
    (c) Table of Sections.--The table of sections for chapter 211 of 
title 18, United States Code, is amended by striking the item relating 
to section 3237 and inserting the following:

``3237. Offenses taking place in more than one district.''.

SEC. 8. EXPANSION OF AUTHORITY OF SECRET SERVICE.

    Section 3056 of title 18, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by inserting ``641, 656, 657,'' after 
                        ``510,''; and
                            (ii) by striking ``493, 657,'' and 
                        inserting ``493,''; and
                    (B) in paragraph (3), by striking ``federally 
                insured''; and
            (2) by adding at the end the following:
    ``(h)(1) For any undercover investigative operation of the United 
States Secret Service that is necessary for the detection and 
prosecution of a crime against the United States, the United States 
Secret Service may--
            ``(A) use amounts appropriated for the United States Secret 
        Service, including unobligated balances available from prior 
        fiscal years, to--
                    ``(i) purchase property, buildings, and other 
                facilities and lease space within the United States 
                (including the District of Columbia and the territories 
                and possessions of the United States), without regard 
                to sections 1341 and 3324 of title 31, section 8141 of 
                title 40, and sections 3901, 4501 through 4506, 6301, 
                and 6306(a) of title 41; and
                    ``(ii) establish, acquire, and operate on a 
                commercial basis proprietary corporations and business 
                entities as part of the undercover investigative 
                operation, without regard to sections 9102 and 9103 of 
                title 31;
            ``(B) deposit in banks and other financial institutions 
        amounts appropriated for the United States Secret Service, 
        including unobligated balances available from prior fiscal 
        years, and the proceeds from the undercover investigative 
        operation, without regard to section 648 of this title and 
        section 3302 of title 31; and
            ``(C) use the proceeds from the undercover investigative 
        operation to offset necessary and reasonable expenses incurred 
        in the undercover investigative operation, without regard to 
        section 3302 of title 31.
    ``(2) The authority under paragraph (1) may be exercised only upon 
a written determination by the Director of the United States Secret 
Service (in this subsection referred to as the `Director') that the 
action being authorized under paragraph (1) is necessary for the 
conduct of an undercover investigative operation. A determination under 
this paragraph may continue in effect for the duration of an undercover 
investigative operation, without fiscal year limitation.
    ``(3) If the Director authorizes the proceeds from an undercover 
investigative operation to be used as described in subparagraph (B) or 
(C) of paragraph (1), as soon as practicable after the proceeds are no 
longer necessary for the conduct of the undercover investigative 
operation, the proceeds remaining shall be deposited in the general 
fund of the Treasury as miscellaneous receipts.
    ``(4) As early as the Director determines practicable before the 
date on which a corporation or business entity established or acquired 
under paragraph (1)(A)(ii) with a net value of more than $50,000 is to 
be liquidated, sold, or otherwise disposed of, the Director shall 
notify the Secretary of Homeland Security regarding the circumstances 
of the corporation or business entity and the liquidation, sale, or 
other disposition. The proceeds of the liquidation, sale, or other 
disposition, after obligations are met, shall be deposited in the 
general fund of the Treasury as miscellaneous receipts.
    ``(5)(A) The Director shall--
            ``(i) on a quarterly basis, conduct detailed financial 
        audits of closed undercover investigative operations for which 
        a written determination is made under paragraph (2); and
            ``(ii) submit to the Secretary of Homeland Security a 
        written report of the results of each audit conducted under 
        clause (i).
    ``(B) On the date on which the budget of the President is submitted 
under section 1105(a) of title 31 for each year, the Secretary of 
Homeland Security shall submit to the Committee on Appropriations of 
the Senate and the Committee on Appropriations of the House of 
Representatives a report summarizing the audits conducted under 
subparagraph (A)(i) relating to the previous fiscal year.''.

SEC. 9. FALSE CLAIMS SETTLEMENTS.

    (a) Reports by Attorney General.--Not later than November 1 of each 
year, the Attorney General shall submit to the Committee on the 
Judiciary of the Senate and the Committee on the Judiciary of the House 
of Representatives a report that describes each settlement or 
compromise of any claim, suit, or other action entered into with the 
Department of Justice that--
            (1) relates to an alleged violation of section 1031 of 
        title 18, United States Code, or section 3729 of title 31, 
        United States Code (including all settlements of alternative 
        remedies); and
            (2) results from a claim for damages of more than $100,000.
    (b) Contents of Reports.--The description of each settlement or 
compromise required to be included in an annual report under subsection 
(a) shall include--
            (1) the total amount of the settlement or compromise and 
        the portions of the settlement attributable to violations of 
        various statutory authorities;
            (2) the amount of actual damages, or if the amount of 
        actual damages is not available a good faith estimate of the 
        damages, that have been sustained and the minimum and maximum 
        potential civil penalties that may be incurred as a consequence 
        of the conduct of the defendant that is the subject of the 
        settlement or compromise;
            (3) the basis for any estimate of damages sustained and the 
        potential civil penalties incurred;
            (4) the amount of the settlement that represents damages 
        and the multiplier or percentage of the actual damages used in 
        determining the amount to be paid under the settlement or 
        compromise;
            (5) the amount of the settlement that represents civil 
        penalties and the percentage of the maximum potential civil 
        penalty to be paid under the settlement or compromise;
            (6) the amount of the settlement that represents criminal 
        fines and a statement of the basis for the fines;
            (7) a description of the period during which the matter to 
        which the settlement or compromise relates was pending, 
        including--
                    (A) the date on which the complaint was originally 
                filed;
                    (B) a description of the period the matter remained 
                under seal;
                    (C) the date on which the Department of Justice 
                determined whether to intervene in the case; and
                    (D) the date on which the settlement or compromise 
                was finalized;
            (8) whether a defendant or any division, subsidiary, 
        affiliate, or related entity of a defendant had previously 
        entered into a settlement or compromise relating to section 
        1031 of title 18, United States Code, or section 3730(b) of 
        title 31, United States Code, and, if so, the date of and 
        amount to be paid under each such settlement or compromise;
            (9) whether a defendant or any division, subsidiary, 
        affiliate, or related entity of a defendant--
                    (A) entered into a corporate integrity agreement 
                relating to the settlement or compromise;
                    (B) entered into a deferred prosecution agreement 
                or nonprosecution agreement relating to the settlement 
                or compromise; or
                    (C)(i) previously entered into--
                            (I) a corporate integrity agreement 
                        relating to a settlement or compromise relating 
                        to a different violation of section 3730(b) of 
                        title 31, United States Code; or
                            (II) a deferred prosecution agreement or 
                        nonprosecution agreement relating to a 
                        settlement or compromise relating to a 
                        different violation of section 1031 of title 
                        18, United States Code; and
                    (ii) if the defendant had entered an agreement 
                described in clause (i), whether the agreement applied 
                to the conduct that is the subject of the settlement or 
                compromise described in the report or similar conduct;
            (10) for a settlement involving Medicaid, the amounts paid 
        to the Federal Government and to each State participating in 
        the settlement or compromise;
            (11) whether civil investigative demands were issued in 
        process of investigating the matter to which the settlement or 
        compromise relates;
            (12) for a qui tam action--
                    (A) the percentage of the settlement amount awarded 
                to the relator; and
                    (B) whether the relator requested a fairness 
                hearing relating to the percentage received by the 
                relator or the total amount of the settlement;
            (13) the extent to which officers of the agency that was 
        the victim of the loss resolved by the settlement or compromise 
        participated in the settlement negotiations; and
            (14) the extent to which a relator or counsel for a 
        relators participated in the settlement negotiations.

SEC. 10. AGGRAVATED IDENTITY THEFT AND FRAUD.

    (a) In General.--Section 1028A of title 18, United States Code, is 
amended in the section heading by adding ``and fraud'' at the end.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 47 of title 18, United States Code, is amended by striking the 
item relating to section 1028A and inserting the following:

``1028A. Aggravated identity theft and fraud.''.

SEC. 11. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH IDENTIFICATION 
              DOCUMENTS, AUTHENTICATION FEATURES, AND INFORMATION.

    (a) In General.--Section 1028(a)(7) of title 18, United States 
Code, is amended by inserting ``(including an organization)'' after 
``person''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 47 of title 18, United States Code, is amended by striking the 
item relating to section 1028 and inserting the following:

``1028. Fraud and related activity in connection with identification 
                            documents, authentication features, and 
                            information.''.
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